Judge Lewis A. Salame admitted to conspiracy charges related to running an unlicensed money transfer business in Alameda Research. This is part of a case involving several individuals, including FTX co-founder Gary Wang, former Alameda Research CEO Caroline Ellison, and ex-lead engineer Nishad Singh, who are all awaiting sentencing. They have all pleaded guilty to violations during their time in Bankman-Fried’s empire and have testified as government witnesses after agreeing to plea deals.
Meanwhile, the founder of FTX, Sam Bankman-Fried, was found guilty of seven criminal charges, including fraud, last year. Additionally, bankruptcy administrators under new CEO John J. Ray III are working to recover assets and funds to repay creditors. The troubled crypto exchanges owe about $16 billion to more than 36,000 customers, and the goal is to reimburse creditors 90% of recouped wealth.
As of last year, the estate said it held between $7 billion and $9 billion to cover the shortfall left behind by Bankman-Fried. However, claimants are dissatisfied with the firm’s decision to repay asset value derived from when bankruptcy was declared in November 2022.